Why Avery Dennison (AVY) Might Surprise This Earnings Season
Investors are always looking for stocks that are poised to beat at earnings season and Avery Dennison Corporation AVY may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.
That is because Avery Dennison is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of some favorable trends underneath the surface for AVY in this report.
In fact, the Most Accurate Estimate for the current quarter is currently at $1.16 per share for AVY, compared to a broader Zacks Consensus Estimate of $1.12 per share. This suggests that analysts have very recently bumped up their estimates for AVY, giving the stock a Zacks Earnings ESP of +3.39% heading into earnings season.
Avery Dennison Corporation Price and EPS Surprise
Why is this Important?
A positive reading for the Zacks Earnings ESP has proven to be very powerful in producing both positive surprises, and outperforming the market. Our recent 10-year backtest shows that stocks that have a positive Earnings ESP and a Zacks Rank #3 (Hold) or better show a positive surprise nearly 70% of the time, and have returned over 28% on average in annual returns (see more Top Earnings ESP stocks here).
Given that AVY has a Zacks Rank #3 and an ESP in positive territory, investors might want to consider this stock ahead of earnings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Clearly, recent earnings estimate revisions suggest that good things are ahead for Avery Dennison, and that a beat might be in the cards for the upcoming report.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
Click to get this free report
Avery Dennison Corporation (AVY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research